EU Targets Financial Institutions in New Sanctions Scheme

The EU, aiming to curb Russia's battlefield supplies, plans to scrutinize financial institutions and Southeast Asian subsidiaries of Western firms providing products to Russia. Sanctions chief David O'Sullivan outlines this strategy, inspired by U.S. efforts, at a Brussels event. The EU has imposed extensive sanctions since Russia's 2022 invasion of Ukraine.

The EU's sanctions envoy on Wednesday revealed a new focus on targeting financial institutions that facilitate battlefield product flows to Russia, particularly those linked to products made by Western subsidiaries in Southeast Asia.

Speaking at a Brussels think tank event, EU sanctions chief David O'Sullivan emphasized the need to scrutinize these financial entities. 'A lot of the product going through China is made by subsidiaries of western companies in southeast Asia,' he noted.

'We are looking at which financial institutions are funding the shipments of battlefield products to Russia. The U.S. has done this to great effect. We are starting to collect the information and compare notes,' O'Sullivan added. The EU has enforced extensive sanctions on Russia following its full-scale invasion of Ukraine since 2022.

(With inputs from agencies.)